Revenues fall, debt grows: Budva Riviera had a revenue drop of two million, cash of eight million melted away

Profits are melting, debts are growing, cash is "disappearing" from accounts, and there is no modernization, that is the balance sheet of the Budvanska Rivijera Hotel Group in 2025, according to the financial results submitted to the Tax Administration of Montenegro.

These data show that this largest hotel company, majority owned by the state, is in a situation known as "financial scissors" - although on paper total revenues are growing minimally, the company's profitability and liquidity are seriously impaired.

This is visible when comparing the business results of HG Budvanska rivijera in 2025 with the results from the previous year.

Company director Jovan Gregovic He was dismissed five days ago, and the previous finance director was appointed as acting director in his place. Slavica MaslovarThe board of directors did not announce the reasons for the dismissal. Due to the change in management, "Vijesti" was unable to get a comment on the business.

Last year, the company had a net profit of one and a half million, while in 2024 it amounted to four million. The key reason for this situation, first and foremost, is the income from the sale of tourist capacities, which is the core business of HG Budvanska rivijera, which fell by more than two million euros in 2025 compared to 2024.

Along with such a decline in sales revenue, as stated in the financial statement, there was also a decline in cash, or “cash” in the company's accounts. HG Budvanska rivijera “melted” almost 8,8 million euros of cash from the account in one year. Thus, at the end of 2025, only 1,3 million euros were in the account, while the previous year ended with 10,1 million euros in the account.

All these declines in profits and sales are a wake-up call, especially since the poor results occurred in 2025, at a time when competing companies in both Montenegro and the Adriatic region were recording revenue growth and operating successfully.

While HG Budvanska rivijera's profits fell in 2025, debts grew. The burden of debts and interest increased, as did the amount of money reserved for long-term credit obligations. The company borrowed nine million, so the total debt for the year increased from 5,7 to 14,6 million.

Among the expenses in 2025, interest expenses “exploded” to 2,7 million euros, while in 2024, significantly less was spent on interest – only 350.000 euros. These interest expenses directly “ate up” a good part of the potential profit. In addition, long-term provisions, due to new loans, reached 18,3 million euros, which is 8,2 million euros more than in 2024.

All these negative trends prevail in the operations of HG Budvanska rivijera in 2025, although, on paper, a positive business result is officially stated. The decline in revenue with increasing debt is a sign of the company's threatened liquidity. The danger is that Budvanska rivijera may further lose its market position in relation to the competition and more modern hotel complexes.